Advice from Dr. David Marlett, managing director of Appalachian State University’s Brantley Risk & Insurance Center, was recently featured in npr.com post, entitled Insurance costs are soaring around Tornado Alley. Hail is the big problem.
The article examines how insurance companies are adapting their risk models to address the increasing frequency of severe weather threats, including hail.
"The public is more aware of the wildfires and hurricanes and so on, but I assure you, the insurance industry is very aware of the severe convective storms and tornadoes and associated hail," says David Marlett, managing director of the Brantley Risk & Insurance Center at Appalachian State University.
"Insurers are going to follow the same playbook" they've used in response to other threats, Marlett says. "They're going to scale back coverage primarily on the roofs" — for example, by covering the value of a damaged roof rather than the cost of buying a new one — "and they are going to attempt to increase rates to match the risk."
"At some point with a tornado, you simply can't build a structure that's going to withstand that," Marlett says.
Over the past few years, Marlett has frequently commented on climate change and insurance. See more.
About David Marlett
At Appalachian State University, Marlett holds the Independent Insurance Agents of NC Insurance Professorship and is managing director of the Brantley Risk & Insurance Center. He joined App State's faculty in 2003, serving in various leadership roles for the university and its Walker College of Business. Learn more about David Marlett.
About the Brantley Risk and Insurance Center
The Brantley Risk and Insurance Center at Appalachian State University's Walker College of Business enhances the academic experience by providing space and staff to assist risk management and insurance majors with networking, job placement preparation, and contact with faculty members outside the classroom. It provides students opportunities to participate in professional designation and licensing programs, and invites industry leaders to participate in classes and speak to student organizations. It also fosters research and faculty development, assists the insurance industry in designing and delivering continuing education programs, and helps educate the public about the insurance industry. Appalachian is designated a Global Center of Insurance Excellence by the International Insurance Society. Learn more at https://insurance.appstate.edu.
Director of App State's insurance program advises on effects of extreme weather on homeowner costs
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